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JSS2: MATHEMATICS - 3RD TERM

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  1. Expansion and Factorization of Algebraic Expressions | Week 1
    4Topics
    |
    1 Quiz
  2. Algebraic Expansion and Factorization of Algebraic Expression | Week 2
    4Topics
    |
    1 Quiz
  3. Algebraic Fractions I | Week 3
    4Topics
    |
    1 Quiz
  4. Addition and Subtraction of Algebraic Fractions | Week 4
    2Topics
    |
    1 Quiz
  5. Solving Simple Equations | Week 5
    4Topics
    |
    1 Quiz
  6. Linear Inequalities I | Week 6
    4Topics
    |
    1 Quiz
  7. Linear Inequalities II | Week 7
    2Topics
    |
    1 Quiz
  8. Transactions in the Homes and Offices | Week 8
    5Topics
    |
    1 Quiz
  9. Quadrilaterals | Week 9
    2Topics
    |
    1 Quiz
  10. Angles in a Polygon | Week 10
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Income Tax: is the part of a person’s income above a minimum value that is paid to the Government. 

PAYE (Pay As You Earn): Is a method of paying tax where employers deduct income tax from their employees’ pay. 

Taxable Income = Total Income – Allowance 

Tax allowances table: 

(i) Personal allowances = 20% of earned income + N5000 

(ii) Claims for children = N2500 per child (Maximum of 4 children) 

(iii) Dependent relative = N20000 per dependent relative (maximum of 2 dependents).

Rate of Income Tax

Tax bands on taxable income ₦Rate of Tax
First ₦200,00010%
Over ₦200,000 and up to ₦400,00015%
Over ₦400,000 and up to ₦600,00020%
Over ₦600,00025%
Tax bands for a PAYE Tax system

Allowances are as follows: 

(i) Personal allowance = N60,000

(ii) Child allowance = N25,000 for each child under 16 years of age (for a maximum of 4 children)

(iii) Dependent relative allowance = Maximum of N40,000 

Example  

A man has a total income of N528,000 per month. He has three young children. He claims N37,000 for a dependent relative. Calculate the amount of tax he pays. 

Solution 

First: calculate the allowances 

Personal allowance = N60,000

Child allowance = 3  x N25,000 = N75,000

Dependent relative = N37,000

Total allowance = N172,000

Second: Calculate the taxable income 

Taxable income = Total income – Allowances 

= N528,000 – N172,000 

= N356,000

Third: Calculate the tax on the taxable income 

Taxable income = N356,000

= N200,000  + N156,000 

Tax = 10% of N200,000 + 15% of N156,000

= \( \normalsize \frac{10}{100} \scriptsize \: \times N200,000 \: + \: \normalsize \frac{15}{100} \scriptsize \: \times N156,000 \)

= N20,000 + N23,400 

N43, 400

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